Government's Decision to Implement Enhanced Community Quarantine in NCR: Economic Impacts and Mitigation Measures

The government's decision to place the National Capital Region (NCR) under enhanced community quarantine (ECQ) from August 6 to 20, 2021, is expected to have significant economic impacts. According to Socioeconomic Planning Secretary Karl Kendrick Chua, the ECQ in NCR will cost the economy PHP105 billion per week and could increase the number of poor people by up to 177,000 while causing 444,000 job losses due to closed economic activities. However, economists like Rizal Commercial Banking Corp.'s chief economist Michael Ricafort believe that the final approval of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law will offset these losses by boosting economic growth by about 0.5% to 1% annually. Business groups have expressed support for the ECQ, acknowledging its necessity despite potential economic impacts. The Department of Budget and Management is awaiting a directive from the Office of the President concerning cash aid for affected residents during the ECQ period.